U.S. EPA and Solucorp Begin Commercialization of MBS Technology.

WEST NYACK, N.Y.--(BUSINESS WIRE)--August 19, 1997--Solucorp Industries, Ltd. (OTCBB:SLUP) today announced that it has been advised by the U.S. Environmental Protection Agency (EPA) that the EPA is commencing its commercialization program for Solucorp's patent-pending Molecular Bonding Technology (MBS). This technology, which converts hazardous metals to their natural, non-hazardous state, successfully completed the Superfund Innovative Technology Evaluation (SITE) Program.

In a specially prepared report to its constituents, (see attached) the EPA has confirmed that the company's MBS Soil Remediation Technology achieved outstanding results at the Midvale Slag Superfund Site in Utah. The EPA, in keeping with its commitment to assist Solucorp in commercializing the MBS process, is disseminating this Demonstration Bulletin as the first of a roll-out of reports. This bulletin will also be placed on the EPA WEB site. In the months to come, full technical evaluation reports and an EPA produced video will detail the MBS technology and its proven capabilities and cost efficiency in remediating heavy metals contamination.

All EPA reports will be disseminated to EPA Regional offices throughout the entire United States and its territories, thereby alerting all site managers of the 320 Superfund Sites Comtaminated with heavy metals.

Headquartered in West Nyack, N.Y., Solucorp Industries develops products for environmental markets, with specific focus on solving the problem of heavy metals contamination. The Company's patent-pending MBS process has been acknowledged as an innovative and cost-efficient solution for remediating heavy metals in soil and industrial slag, sludge and ash. -0- The foregoing discussion contains forward-looking statements which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income may differ due to such factors as: delays in payment on contracts due to dealings with governmental and foreign entities; fluctuations in operating costs associated with changes in project specification and general economic conditions; substantial fluctuations in revenues; economics, and other conditions affecting the ability of prospective customers to finance projects; and other risks generally affecting financing projects. -0-

Demonstration Bulletin

Molecular Bonding System(R) for Heavy Metals Stabilization

Solucorp(R) Industries Ltd.

Technology Description: The patent-pending Solucorp(R) Molecular Bonding System (MSB(R)) utilizes a solid-phase chemical stabilization process to reduce the leachability of heavy metals in soils, slags, and other solid wastes. Arsenic, (As), cadmium (Cd), chromium, copper, lead (PB), mercury, and zinc are rapidly converted to less-soluable metallic sulfides. The technology was applied ex situ during the demonstration but may be utilized with standard in situ mixing equipment; this bulletin discusses only ex situ applications.

Soil is excavated, then pretreated by screening to remove debris larger than two inches in diameter. As with other ex situ technologies, wet or clayey soils may need to be dried to improve material handling characteristics. The MSB agent, a proprietary chemical mixture, is added to the pugmill where it is blended with the soil. Moisture also may be added at the pugmill, to increase the moisture content of the soil to 15 to 25 percent to promote uniform mixing. Treated soil exists on a conveyor and is stockpiled.

Leachability of target metals in the treated soil is determined using the Toxicity Characteristic Leaching Procedure (TCLP) or other appropriate test, such as the Synthetic Precipitation Leaching Procedure (SPLP). Depending on chemical feed and water requirements, the volume expansion of the treated soil may range from 3 to 16 percent. The total metal concentrations in and the physical characteristics of the soil are not significantly changed by treatment. Hydrogen sulfide gas formed during the process is collected and vented through drums of specially-coated carbon; a packed tower scrubber, which is more efficient, may replace the carbon if air emission standards are more stringent.

Waste Applicability: The MBS process is designed to reduce leachable heavy metals concentrations from soils or solid wastes. Certain metals present in reduced forms (e.g. As) may require treatment with an oxidizing agent to improve treatment effectiveness. As with other ex situ processes, this technology is most cost-effective for treatment of contaminants in shallow soils because the soils are readily accessible. However, excavation to greater depths, or use of in situ mixing may provide cost-effective applications of the MBS technology at certain sites. Soils or wastes with high chloride content (in excess of 15 to 20 percent) cannot be effectively treated with this technology.

Demonstration Results: The U.S. EPA National Risk Management Research Laboratory (NRMRL) Superfund innovative Technology Evaluation (SITE) Program conducted a demonstration of the Solucorp MBS process at the Midvale Slag Superfund Site in Midvale, Utah during the Spring of 1997. Three waste streams, contaminated with As, Cd, and Pb. were treated: Soil/Fill (SF), Slag Pile B (SB), and Miscellaneous Smelter Waste Without Brick (SW). Approximately 500 tons of each waste/soil was treated. A second test of 500 tons of SW was performed independently by Solucorp using a higher purity sulfide component in the MBS formula, after the initial demonstration of SW resulted in TCLP leachable Cd concentrations exceeding the regulatory limit of l mg/L. For the SW retest, Science Applications International Corp. (SAIC) performed sampling and provided oversight and analytical support under contract to Solucorp. All procedures were identical to those used by SAIC during the initial demonstration that was performed for EPA-NRMRL. EPA-NRMRL provided independent oversight and review of the SW retest results.

Because EPA NRMRL's Quality Assurance Program has not yet reviewed the demonstration results, this bulletin presents preliminary results only. The key finding from the Solucorp MBS demonstration is that the mean TCLP leachable Pb concentration in each of the three wastes/soils was reduced to less than the TCLP regulatory limit of 5 mg/L. Table 1 presents the mean TCLP leachable Pb concentrations in the untreated and treated wastes/soils.

Table 1. Mean TCLP Leachable Pb Concentrations, mg/L.

WASTE/SOIL UNTREATED TREATED

SF 28 0.18

SB 17 0.70

SW 36 2.68

SW (Retest) 15 0.33

Other demonstration results include:

--The mean TCLP leachable As concentrations increased slightly

with treatment, but were below the TCLP regulatory limit of 5

mg/L in each of the untreated and treated wastes/soils.

--The mean TCLP leachable Cd concentrations were below the TCLP

regulatory limits of 1 mg/L in both the untreated and treated

SF and SB; the mean TCLP Cd concentrations in the untreated and

treated SW were 2.1 and 1.1 mg/L, respectively. In the SW

retest, mean TCLP Cd values decreased from O.5 to 0.01 mg/L.

--SPLP, As, Cd, and Pb concentrations were below their respective

regulatory limits in the treated and untreated SF, SB, SW, and

SW retest.

--The mean volume increases in the treated SF, SB, SW, and SW

retest were 16, 4, 13, and 14 percent, respectively, as compared

to the excavated, untreated waste/soil.

--Other than dilution effects, total metals concentrations were

not affected by the treatment process.

--Process throughput of untreated waste/soil averaged 52, 59, 56,

and 61 tons/hour for the SF, SB, SW, and SW retest, respectively.

--Treated wastes/soils passed EPA's Multiple Extraction Procedure

(As, Cd, and Pb); however, no conclusion could be drawn

regarding the effect of treatment on long-term stability 

because there was no change in the measured leachable metal

concentrations from the treated to the untreated wastes/soils.

Total costs for treatment of approximately 2 million tons of SF, SB, and SW were estimated assuming a system capacity of 10,000 tons per day. Based on scale-up from the demonstration and information from Solucorp and other sources, costs were estimated at approximately $16/ton of waste/soil at the Midvale Slag Site.

The EPA will publish an Innovative Technology Evaluation Report (ITER) and a Technology Evaluation Report (TER) in the fall of 1997. These reports will address final test results in detail, including a complete analysis of analytical and geophysical results, estimated processing costs, and observations on process reliability and operating conditions made during the demonstration.

For further Information Contact: Thomas J. Holdsworth, SITE Project Manager U.S. Environmental Protection Agency, National Risk Management Research Laboratory 26 W. Martin Luther King Dr. Cincinnati, OH 45268 [phone]

Peter Mantia, President Solucorp Industries Ltd. 250 W. Nyack Rd. West Nyack, NY 10994 [phone]

CONTACT: Martin E. Janis & Company Inc.

Bev Jedynak, 312/943-1100

or

Solucorp Industries Ltd.

Brian Binkes, 913/685-4530